TAUFIQ AHMED,MURADNAGAR vs. INCOME TAX OFFICER WARD 2(2)(4), GHAZIABAD

Brief facts of the case are that the ld AO received information through AIR that assessee has deposited cash of Rs. 59,34,300/- in his savings bank account maintained with Standard Chartered Bank, New Delhi during AY 2012-13. In order to verify the nature and source for the cash deposit, a verification letter was issued and sent to the assessee through speed post. In response, the assessee did not furnish any reply about the nature and source of cash deposit. Since there was no response from the assessee, proceedings u/s 147 was initiated and accordingly, notice u/s 148 Taufiq Ahmed of the Act was issued to the assessee with the prior approval of ld. Principal Commissioner of Income Tax, Ghaziabad. Subsequently, notice u/s 142 was also issued to the assessee since there was compliance from the assessee. Assessment was completed u/s 144 of the act by adding cash deposits made by the assessee during the year under consideration.

Aggrieved with the above order, the assessee preferred an appeal before the NFAC, Delhi and filed grounds of appeal as well as statement of facts. After considering the grounds of appeal and facts on record, the ld CIT(A) observed the fact on record that assessee is a meat seller, however not filed any supporting documents relevant to the submission made by the assessee. He observed that turnover and gross receipts declared by the assessee are Rs. 20,92,828/- while cash deposit is Rs. 59,34,300/-. Since, the assessee has not filed proper documentary evidence before him as well as before the AO, he sustained the addition made by the AO u/s 147 read with section 144 of the Act.

Aggrieved, the assessee is in appeal before us raising grounds of appeal and also filed an application for admission of additional evidence under Rule 29 of the Income Tax Appellate Tribunal Rules, 1963. After considering the additional evidence submitted before us, we admit the additional evidence submitted by the assessee and further considering the submissions of both the parties,we are inclined to remit the additional evidence back to the AO to verify the same and redo the assessment de novo after giving proper opportunity of being heard to the assessee. At the same time, we also direct the assessee to comply to the notices of

In the result, the appeal filed by the assessee is allowed for statistical purposes.